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MAGHESH   28 September 2015

Interest on freezed fixed deposits

I have a fixed deposit amount of two lakh rupees which i have invested in a cooperative bank in 2008. I have deposited it for around 8% interest for a period of 45 days.

The fixed deposit was freezed by police investigating agency related to some financial case investigation.

Now i am at court to fight to release my fixed deposit.

My question is whether i shall get interest for my fixed deposit for all these years from 2008 to 2015? Will the fixed deposits shall be autorenewed even if they are freezed? 

Please reply


 7 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     29 September 2015

You had deposited money with a Bank. The contract is between yourself and the Bank concerned. Statutory authorities got your deposit frozen. Irrespective of the fact that the deposit is got frozen by authorities, Banks have to continue to pay the interest. In the absense of instructions from you and/or the statutory authorities who got the deposit frozen, Banks normally renewe the deposit at periodical intervals, for the same period for which the deposit was originally made. Therefore, you may call upon the bank and enquire about the present status of the deposit and its present due date. Better you may find out whether the deposit is kept in operative status or kept in inoperative status.

MAGHESH   29 September 2015

Sir, Thank you very much for your reply.

I have a few questions based on your answer

1. The statuatory authority has given instruction to freeze the FD. In that case will i get interest money?

2. What if my FD is in INOPERATIVE status? Will i get interest money for my FD?

Please clarify in detail

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     29 September 2015

1. The statuatory authority has given instruction to freeze the FD. In that case will i get interest money? It depends upon the order which was served upon the Bank. In case the amount of the deposit is enough for the statutory authorities for their purpose, they may, (I repeat they may)permit you to take the interest, leaving the principal intact with the bank under frozen deposit status. 2. What if my FD is in INOPERATIVE status? Will i get interest money for my FD? If the account is in inoperative status means that bank is not renewing the deposit and kept as it is since the last due date. That is why I suggested you to go to the Bank concerned and talk to the Branch Manager regarding the present status of your fixed deposit with them.

MAGHESH   30 September 2015


  I have checked with Bank today and they have confirmed that they shall be adding interest to my FD. They shall release the whole amount including interest once i get court order to release FD. 

Thank you very much for your assistance

T. Kalaiselvan, Advocate (Advocate)     05 October 2015

Hope your question is resolved.  If you have an answer to your question what was the necessity for posting this query?

MAGHESH   05 October 2015

Respected Kalaiselvan Sir,

  I got the answer for my problem when i posted my query here. I was hesitated to go to bank and ask it. But when i got a reply from Sivaramaprasad Sir, it motivated me to go bank and ask. Thus i posted the query here.



c.p.s. ramachary (1500)     15 October 2015

Unless the Authority who freezed the account gives its written consent for payment of interest accrued on the deposits so freezed, no part of it or interest can be parted with. The purpose of freezing the accouni must be known to the freezer only. However the aggrieved party may approach the concerned judicial authority for an appropriate direction.  

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